Sundance takeover falls through
Sundance Resources has finally conceded that its takeover deal with Chinese group Hanlong has failed.
Shares in the iron ore miner instantly plummeted following news that the deal was dead.
Sundance was the worst performing stock on the ASX 200 on Tuesday. Its shares plunged 10¢, or 47.6 per cent, to close at a four-year low of 11¢. The plunge wiped $307.2 million off the company's market value. The stock had not traded since March 19 when it fetched 21¢ a share and at that price Sundance's market capitalisation had already halved since December.
Almost 21 months after a full takeover was launched by Hanlong, Sundance confirmed on Monday evening that the company had terminated its agreement with the Chinese group after it became clear Hanlong could not meet its funding obligations.
The parties had been locked in intense negotiations for several weeks in a bid to salvage a deal, but the termination means Sundance shares will resume trading on Wednesday.
The takeover had appeared destined for failure for several months after Hanlong missed many deadlines to provide evidence of its ability to finance the deal, which was designed to give Hanlong control of Sundance's iron ore project in Africa.